Have you watched the news lately? If not, let me inform you of a current issue the news is reporting. The US economy is in the midst of a recovery and the recession is over.

Can someone explain this to me? How is that possible? On what basis is this being substantiated?

National unemployment is at a high. This is the highest rate it has been in quite a while. Housing still has yet to hit its bottom. Every time the government stops the mouth to mouth resuscitation, the economy begins to “flat line” again. True economic recovery manifests itself in several ways, not simply by the Dow Jones Index rising. Some of the components of true economic recovery are listed below:

New job creation – people go back to work and earn income which they slowly begin to spend thus beginning to turn the economy.

House prices hit bottom and then stabilize – Most US markets have not witnessed a bottom point in housing. There is still some type of invisible inflationary component attempting to maintain housing prices. We currently observe this is New York City.

New home purchases – new homes are purchased not due to government incentives but because people are back to work.

Small business lending – banks would embark on giving small businesses loans again, in an attempt to sure-up the back bone of the American economy.

Retail sales would increase – keep an eye on the big retailers around the holiday season. When things are well people shop. However, when things appear not to be well the public becomes frugal.

Although these things are not currently being experienced it does not mean that you should pull back from your financial plans. It simply means that you should be aware of what economic season you are in. Wearing summer clothes outside in the winter is not customary, but that wouldn’t negate you from going outside.
Be careful of what you accept as truth. Just because it was reported on the news or even in this blog doesn’t mean it is true. Explore topics and learn the truth for yourself, don’t be hypnotized.